VTI 11.1% 6.0¢ visioneering technologies, inc.

CARRINGTON SOLD ?????

  1. 3,176 Posts.
    Virotec International Ld
    06 November 2002

    VIROTEC INTERNATIONAL LTD


    6 November 2002



    OPTION TO SELL MINING INTEREST



    Virotec International Ltd (ASX/AIM: VTI) has reached agreement with Kanowna
    Lights Limited (ASX: KLS) regarding an option to acquire Virotec's Mt Carrington
    Gold/ Silver project located at Drake in New South Wales, Australia.



    The agreement is subject to several conditions. In the event that KLS exercises
    the option to acquire the project (which expires on 15 March 2004), Virotec will
    be issued with securities equivalent to 19.9% of KLS's shares and options on
    issue following the acquisition.



    The signing of this agreement is consistent with Virotec's stated intention to
    reduce its direct interest in its mining assets, as the activities no longer fit
    within its core business, by way of joint venture arrangements or sale and
    retention of an indirect interest in the assets. Virotec is also in the process
    of reducing its interests in mining leases in the Mt Garnet, Leichhardt Creek
    and Gowrie Creek areas in North Queensland by sale and/or relinquishment.



    The detailed announcement (without attachments) released by KLS follows. For
    further information please contact Angus Craig, Company Secretary on +617 5530
    8014.









    Angus Craig

    Company Secretary

    Virotec International Ltd





    VIROTEC INTERNATIONAL LTD

    ABN 81 004 801 398

    PO Box 188 Sanctuary Cove QLD 4212

    Australia


    www.virotec.com










    Kanowna Lights
    l i m i t e d
    A C N 062 409 303





    MOUNT CARRINGTON GOLD/SILVER PROJECT





    Kanowna Lights Limited ('KLS') advises that it has entered into an agreement ('
    Agreement') with Virotec International Limited ('Virotec') whereby it has the
    option to acquire Virotec's 100% owned Mt Carrington Gold/Silver Project ('Mt
    Carrington' or 'The Project').



    Virotec has defined inferred precious metal resources containing approximately
    280,000 ounces of gold and 10.3 million ounces of silver at Mt Carrington,
    within a major epithermal style zone of polymetallic mineralisation. The
    Agreement has been negotiated to provide for early development of the
    structurally controlled higher-grade zones within the resource base, which may
    ultimately provide the model for further regional exploration.



    Under the terms of the Agreement, KLS will manage and solely fund a staged
    feasibility study. At the completion of the feasibility study KLS may exercise
    its option to acquire 100% of Mt Carrington by issuing to Virotec ordinary fully
    paid shares equivalent to 19.9% of the issued capital of KLS with an equivalent
    number of options.



    The key points of the Agreement are:



    1. Staged feasibility study to be completed before 15 March 2004, with the right
    of withdrawal at any stage;
    2. Feasibility study objective is to demonstrate viability of a minimum 200,000
    ounce gold equivalent project over a 5 year mine life; and
    3. KLS must raise approximately $1.0 million or demonstrate the financial
    capacity to fund the feasibility study.

    The Project

    The Project area occupies 22 mining tenements (renewal approval pending)
    covering the major known gold/silver/base metal deposits of the Drake Mineral
    Field (see Table 1 & Map 1). These deposits have a history of exploration and
    mining since 1886 when high-grade gold, silver and copper veins were first
    discovered. Until 1980 mining was restricted to relatively small-scale,
    high-grade operations.



    Since 1960 several phases of exploration by larger companies have primarily
    targeted bulk tonnage open pittable deposits to a maximum depth of 100 metres,
    including a major silver exploration program and feasibility study during
    1976-1984 by Aberfoyle, and the development of a short-lived 400,000 TPA open
    cut gold operation in 1988 by Mt Carrington Mines Ltd (MCM). Both Aberfoyle and
    MCM resource calculations were based on stratigraphic and structural
    interpretations derived largely from vertical drilling and surface mapping. Very
    few angled holes were drilled prior to 1990.



    Subsequent exploration by CRAE during 1990-94 led to a significant
    reinterpretation of the Mt Carrington stratigraphy with the recognition of
    numerous intrusive units previously mapped as volcanic/sedimentary rocks. This
    work has helped define structural controls over mineralisation not previously
    considered by either Aberfoyle or Mt Carrington Mines.

    It is now believed that gold/silver mineralisation at Mt Carrington is
    concentrated in structurally controlled high-grade vertical to sub-vertical
    shoots within favourable stratigraphic units, and earlier predominantly vertical
    drilling was ineffective in exploring for these high-grade zones.



    The recent work by Virotec in compiling and interpreting the extensive project
    database indicates that there is potential for Mt Carrington to host economic
    high-grade gold/silver deposits within a major polymetallic epithermal zone of
    mineralisation. It also reviews earlier geological interpretation, resource
    assessment and metallurgical and environmental considerations.



    Past production records are incomplete but it is estimated that total production
    to date is gold 1,026kg and silver 32,100kg. No historical base metal
    production records have been sighted. A summary of the exploration and mining
    history is presented in Table 2.

    Project Resources

    Virotec have defined separate inferred resources for gold and silver for the Mt
    Carrington Project. The gold resource has been defined from 5 deposits and
    totals 3.6Mt @ 2.44 g/t for 280,000 oz's. The silver resource is defined from a
    further 4 deposits and totals 1.8Mt @ 178 g/t Ag for 10.3M oz's. No cut-off
    grades have been applied to the inferred resource calculation.

    Project Database

    The Agreement requires Virotec to provide access to the comprehensive geological
    database, which will be fully transferred to KLS upon acquisition of Mt
    Carrington.

    Project Infrastructure

    Mt Carrington is located near the town of Drake approximately 270 km south west
    of Brisbane and 45 km east of Tenterfield, on the Bruxner Highway in northern
    New South Wales.



    The Project is accessible from Brisbane and Grafton via bitumen road. Due to
    previous mining operations significant infrastructure is in place including
    roads, power supply, communications, administration, accommodation and storage
    facilities, fresh water and tailings dams.

    Environmental Considerations

    Virotec has expended some $700,000 in environmental cleanup at the Project. This
    work included treating the high acid content tailings dam with the BauxsolTM
    technology and other activities.



    Presently the majority of tenements at Mt Carrington are in the process of
    renewal (Table 1). In accordance with the NSW Mining Act, Virotec has lodged a
    draft Mining Operations Plan, and the Agreement specifically requires a review
    of the tenements in Stage One.

    Virotec International Limited

    Virotec is at the cutting edge of environmental geochemistry and engineering.



    Whilst Virotec is based in Queensland, it has extended its technologies and now
    provides a range of products and services in Australia, New Zealand, Europe,
    North America and Asia.



    Proposed Transaction

    The Agreement establishes a three-stage process for KLS to acquire 100% of the
    Mt Carrington Project from Virotec.

    • Stage One (Expiring 15 March 2003)

    KLS will initially undertake various due diligence procedures, including a
    review of the database, the status of the tenements (including an environmental
    review), and determination of the scope of the proposed feasibility study.



    Also during Stage One KLS will;

    o Obtain any required shareholder approvals

    o Seek to raise approximately $1.0 million or demonstrate financial
    capacity to fund the feasibility study.

    • Stage Two (Expiring 15 March 2004)

    Stage Two requires the completion of a feasibility study which will have an
    objective of demonstrating the viability of a 200,000 ounce gold equivalent
    project over a 5 year mine life.



    KLS will have the right to withdraw at any time should it form the opinion that
    it is not feasible to raise the funds to develop and establish a mine at the
    Project.

    • Stage Three

    On completion of the feasibility study (scheduled for 15 March 2004) KLS may
    exercise its option to acquire 100% of the Mt Carrington Project by issuing to
    Virotec ordinary fully paid shares equivalent to 19.9% of the issued capital of
    KLS, with an equivalent number of options. The issue of shares and options will
    be subject to shareholder approval.



    The options will have an exercise price of 20 cents, will be exercisable within
    two years of settlement and must comply with the ASX Listing Rules.



    The Company will make an application to the ASX for a waiver of Listing Rule
    6.18.

    Capital Raising

    To fund the Agreement and working capital requirements KLS intends to raise
    approximately $1,000,000. Further details of which will be announced in due
    course.



    Further information may be obtained by contacting either Messrs John Barr or
    Neil Biddle at the Company's offices'.



    Yours faithfully

    KANOWNA LIGHTS LIMITED









    Thomas B Bannerman

    Chairman



    6 November 2002





    So far as it relates to ore and mineralisation this report is based on
    information compiled by Mr Neil Biddle a member of the Australasian Institute of
    Mining and Metallurgy who has had more than five years experience in the field
    of activity being reported on. This report accurately reflects the information
    compiled by that member.





    This information is provided by RNS
    The company news service from the London Stock Exchange




    Kanowna Lights
    l i m i t e d
    A C N 062 409 303





    MOUNT CARRINGTON GOLD/SILVER PROJECT





    Kanowna Lights Limited ('KLS') advises that it has entered into an agreement ('
    Agreement') with Virotec International Limited ('Virotec') whereby it has the
    option to acquire Virotec's 100% owned Mt Carrington Gold/Silver Project ('Mt
    Carrington' or 'The Project').



    Virotec has defined inferred precious metal resources containing approximately
    280,000 ounces of gold and 10.3 million ounces of silver at Mt Carrington,
    within a major epithermal style zone of polymetallic mineralisation. The
    Agreement has been negotiated to provide for early development of the
    structurally controlled higher-grade zones within the resource base, which may
    ultimately provide the model for further regional exploration.



    Under the terms of the Agreement, KLS will manage and solely fund a staged
    feasibility study. At the completion of the feasibility study KLS may exercise
    its option to acquire 100% of Mt Carrington by issuing to Virotec ordinary fully
    paid shares equivalent to 19.9% of the issued capital of KLS with an equivalent
    number of options.



    The key points of the Agreement are:



    1. Staged feasibility study to be completed before 15 March 2004, with the right
    of withdrawal at any stage;
    2. Feasibility study objective is to demonstrate viability of a minimum 200,000
    ounce gold equivalent project over a 5 year mine life; and
    3. KLS must raise approximately $1.0 million or demonstrate the financial
    capacity to fund the feasibility study.

    The Project

    The Project area occupies 22 mining tenements (renewal approval pending)
    covering the major known gold/silver/base metal deposits of the Drake Mineral
    Field (see Table 1 & Map 1). These deposits have a history of exploration and
    mining since 1886 when high-grade gold, silver and copper veins were first
    discovered. Until 1980 mining was restricted to relatively small-scale,
    high-grade operations.



    Since 1960 several phases of exploration by larger companies have primarily
    targeted bulk tonnage open pittable deposits to a maximum depth of 100 metres,
    including a major silver exploration program and feasibility study during
    1976-1984 by Aberfoyle, and the development of a short-lived 400,000 TPA open
    cut gold operation in 1988 by Mt Carrington Mines Ltd (MCM). Both Aberfoyle and
    MCM resource calculations were based on stratigraphic and structural
    interpretations derived largely from vertical drilling and surface mapping. Very
    few angled holes were drilled prior to 1990.



    Subsequent exploration by CRAE during 1990-94 led to a significant
    reinterpretation of the Mt Carrington stratigraphy with the recognition of
    numerous intrusive units previously mapped as volcanic/sedimentary rocks. This
    work has helped define structural controls over mineralisation not previously
    considered by either Aberfoyle or Mt Carrington Mines.

    It is now believed that gold/silver mineralisation at Mt Carrington is
    concentrated in structurally controlled high-grade vertical to sub-vertical
    shoots within favourable stratigraphic units, and earlier predominantly vertical
    drilling was ineffective in exploring for these high-grade zones.



    The recent work by Virotec in compiling and interpreting the extensive project
    database indicates that there is potential for Mt Carrington to host economic
    high-grade gold/silver deposits within a major polymetallic epithermal zone of
    mineralisation. It also reviews earlier geological interpretation, resource
    assessment and metallurgical and environmental considerations.



    Past production records are incomplete but it is estimated that total production
    to date is gold 1,026kg and silver 32,100kg. No historical base metal
    production records have been sighted. A summary of the exploration and mining
    history is presented in Table 2.

    Project Resources

    Virotec have defined separate inferred resources for gold and silver for the Mt
    Carrington Project. The gold resource has been defined from 5 deposits and
    totals 3.6Mt @ 2.44 g/t for 280,000 oz's. The silver resource is defined from a
    further 4 deposits and totals 1.8Mt @ 178 g/t Ag for 10.3M oz's. No cut-off
    grades have been applied to the inferred resource calculation.

    Project Database

    The Agreement requires Virotec to provide access to the comprehensive geological
    database, which will be fully transferred to KLS upon acquisition of Mt
    Carrington.

    Project Infrastructure

    Mt Carrington is located near the town of Drake approximately 270 km south west
    of Brisbane and 45 km east of Tenterfield, on the Bruxner Highway in northern
    New South Wales.



    The Project is accessible from Brisbane and Grafton via bitumen road. Due to
    previous mining operations significant infrastructure is in place including
    roads, power supply, communications, administration, accommodation and storage
    facilities, fresh water and tailings dams.

    Environmental Considerations

    Virotec has expended some $700,000 in environmental cleanup at the Project. This
    work included treating the high acid content tailings dam with the BauxsolTM
    technology and other activities.



    Presently the majority of tenements at Mt Carrington are in the process of
    renewal (Table 1). In accordance with the NSW Mining Act, Virotec has lodged a
    draft Mining Operations Plan, and the Agreement specifically requires a review
    of the tenements in Stage One.

    Virotec International Limited

    Virotec is at the cutting edge of environmental geochemistry and engineering.



    Whilst Virotec is based in Queensland, it has extended its technologies and now
    provides a range of products and services in Australia, New Zealand, Europe,
    North America and Asia.



    Proposed Transaction

    The Agreement establishes a three-stage process for KLS to acquire 100% of the
    Mt Carrington Project from Virotec.

    • Stage One (Expiring 15 March 2003)

    KLS will initially undertake various due diligence procedures, including a
    review of the database, the status of the tenements (including an environmental
    review), and determination of the scope of the proposed feasibility study.



    Also during Stage One KLS will;

    o Obtain any required shareholder approvals

    o Seek to raise approximately $1.0 million or demonstrate financial
    capacity to fund the feasibility study.

    • Stage Two (Expiring 15 March 2004)

    Stage Two requires the completion of a feasibility study which will have an
    objective of demonstrating the viability of a 200,000 ounce gold equivalent
    project over a 5 year mine life.



    KLS will have the right to withdraw at any time should it form the opinion that
    it is not feasible to raise the funds to develop and establish a mine at the
    Project.

    • Stage Three

    On completion of the feasibility study (scheduled for 15 March 2004) KLS may
    exercise its option to acquire 100% of the Mt Carrington Project by issuing to
    Virotec ordinary fully paid shares equivalent to 19.9% of the issued capital of
    KLS, with an equivalent number of options. The issue of shares and options will
    be subject to shareholder approval.



    The options will have an exercise price of 20 cents, will be exercisable within
    two years of settlement and must comply with the ASX Listing Rules.



    The Company will make an application to the ASX for a waiver of Listing Rule
    6.18.

    Capital Raising

    To fund the Agreement and working capital requirements KLS intends to raise
    approximately $1,000,000. Further details of which will be announced in due
    course.



    Further information may be obtained by contacting either Messrs John Barr or
    Neil Biddle at the Company's offices'.



    Yours faithfully

    KANOWNA LIGHTS LIMITED









    Thomas B Bannerman

    Chairman



    6 November 2002





    So far as it relates to ore and mineralisation this report is based on
    information compiled by Mr Neil Biddle a member of the Australasian Institute of
    Mining and Metallurgy who has had more than five years experience in the field
    of activity being reported on. This report accurately reflects the information
    compiled by that member.





    This information is provided by RNS
    The company news service from the London Stock Exchange







 
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